AerSale (NASDAQ:ASLE) pulls back 8.3% this week, but still delivers shareholders favorable 14% CAGR over 3 years

It hasn't been the best quarter for AerSale Corporation (NASDAQ:ASLE) shareholders, since the share price has fallen 17% in that time. In contrast the stock is up over the last three years. Arguably you'd have been better off buying an index fund, because the gain of 47% in three years isn't amazing.

Although AerSale has shed US$67m from its market cap this week, let's take a look at its longer term fundamental trends and see if they've driven returns.

Check out our latest analysis for AerSale

While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

During three years of share price growth, AerSale moved from a loss to profitability. That would generally be considered a positive, so we'd expect the share price to be up.

The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).

It's probably worth noting that the CEO is paid less than the median at similar sized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. This free interactive report on AerSale's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

A Different Perspective

Pleasingly, AerSale's total shareholder return last year was 28%. That gain actually surpasses the 14% TSR it generated (per year) over three years. The improving returns to shareholders suggests the stock is becoming more popular with time. It's always interesting to track share price performance over the longer term. But to understand AerSale better, we need to consider many other factors. Take risks, for example - AerSale has 3 warning signs we think you should be aware of.

We will like AerSale better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.